Shiba Inu and Dogecoin continue to remain the first choice for investors heading into a bull market. But the crashes of recent weeks have shaken not only their prices, but also market sentiment. As sentiment towards these two meme coins wanes, it could mean it’s time to return to them.
Dogecoin and Shiba Inu fall to neutral
THE Fear and Greed Index is a scale that tracks how crypto investors view a particular asset at any given time. The higher the scale, the more investors are willing to invest in the assets. Whereas the opposite happens when the balance falls.
This scale measures feeling in five categories, including extreme fear, fear, neutral, greed, and extreme greed, and these are represented by numbers. 1-25 is extreme fear, 26 to 46 is fear, 47 to 53 is neutral, 54 to 75 is greed, and 76-100 is extreme greed.
Now, since the crypto market has seen an upswing since early 2024, coins like Shiba Inu and Dogecoin have seen their market sentiment rise into greed territory, even as high as the Extreme Greed. However, now that prices are starting to correct lower, sentiment has also fallen, sending them back into fear territory. Currently, the two indices for Dogecoin and Shiba Inu are sitting in neutral.
The data of CFGI website places Shiba Inu sentiment at a value of 51, which is neutral. At the same time, Dogecoin has a score of 52, which is also neutral. Right now, that means investors aren’t moving and are instead waiting to see where prices go before jumping into the ring.
Is it time to buy?
Historically, the best time to buy is when investors are wary of the market. This often means prices bottom out, making it the ideal entry point. However, this usually occurred during periods of extreme fear and not neutral feeling.
For example, Dogecoin and Shiba Inu are still showing bullish metrics. One of them is the daily trading volume of these assets. Dogecoin trading volume is up 15.51% over the past day to $845.7 million. While the Shiba Inu trading volume is up 22.86% over the same period to $389 million.
This suggests that while sentiment tends toward neutral, there is still plenty of interest in both. coins. So now is not the ideal time to go all out. Instead, smaller positions and dollar cost averaging (DCA) are a better solution.
However, as the bull market is expected to continue and surpass previous bull markets, current prices are expected to appear to be a bargain once the bull market is over. cryptocurrency market starts to move.
Featured image created using Dall.E, chart from Tradingview.com
